V. Kerry Smith (North Carolina State University) Mary F. Evans (University of Tennessee at Knoxville) Hyun Kim (Portland State University) Donald H. Taylor (Duke University)
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Wage hedonic models are estimated with the Health and Retirement Study to measure the risk-wage tradeoffs (value of statistical lives) for older workers. The analysis explicitly allows for multiple employment states, including retirement, using a multinomial selection model. The results suggest that the oldest and most risk-averse workers require significantly higher, not lower, compensation to accept increases in job-related fatality risks. Copyright (c) 2004 President and Fellows of Harvard College and the Massachusetts Institute of Technology.
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